The Paris-based Organisation for Economic Cooperation and Development (OECD) reported on Wednesday that international aid fell by 7.1% in 2024 compared to the previous year, marking the first drop after five consecutive years of growth.
The OECD’s Development Assistance Committee (DAC) members provided $212.1 billion in international aid in 2024, accounting for 0.33% of their combined Gross National Income (GNI).
“The fall in official development assistance (ODA) was due to a reduction in contributions to international organisations, as well as a decrease in aid for Ukraine, lower levels of humanitarian aid, and reduced spending on hosting refugees in donor countries,” a statement from the OECD reads.
Net aid to Ukraine fell by 16.7% from 2023, totaling $15.5 billion, or 7.4% of total aid. Humanitarian aid dropped by an estimated 9.6% in 2024, amounting to $24.2 billion.
“ODA used to cover refugee costs within donor countries fell by 17.3% in 2024 compared to 2023 and amounted to USD 27.8 billion, representing 13.1% of DAC member countries’ total ODA, down from 14.6% in 2023. For five countries, in-donor refugee costs still represented more than a quarter of their ODA in 2024,” the statement said.
The US continued to be the largest donor with $63.3 billion, accounting for 30% of total aid in 2024, followed by Germany with $32.4 billion, the UK with $18.0 billion, Japan with $16.8 billion, and France with $15.4 billion.
“It is regrettable that ODA decreased in 2024 after five years of continuous growth. It’s even more concerning that some of the major donors have signalled further, and quite significant, decreases over the coming years,” OECD DAC Chair Carsten Staur said.
“In this situation, it is paramount that ODA is invested where it is most needed, especially in the poorest and most fragile countries. Going forward, poverty eradication, the just green transition, and governance should remain at the core, and we must also make ODA work harder in mobilising other sources of finance. Doubling down on aid effectiveness, together with partner countries, will be the key to achieving this,” he added.